Taking the financial stress out of holiday travel may sound like an oxymoron, but visiting Grandma for Thanksgiving in Minnesota or taking the family to Maui for Christmas is possible with advanced planning. Sure, you may still forget your travel-size toothpaste, but once you arrive at your destination you’ll be able to relax and not worry about the details.
Take solace in the fact that you’re not alone in your holiday season travels. Last winter, a record 107 million Americans traveled 50 miles or more from home from Dec. 23rd to Jan. 1, according to a report from AAA. While traveling during the holiday season tends to be pricier, it’s also convenient because schools are on break and many companies close for part of the week or allow employees to use flex time.
Here are a few money-saving tips that will reduce the costs and stress of traveling during one of the busiest times of the year.
- Start saving yesterday - The key to an enjoyable trip is to save well in advance by putting a specific amount of money aside each month. Calculate how much the trip will cost and include any related expenses in your total. If you’re going to Disney, for example, add the cost of one of those giant turkey legs at the park, souvenirs like bubble wands and any other special events, such as a Character Breakfast. This will allow you to enjoy the experience instead of thinking about how you are going to pay for that extra service or item.
You should also start a separate travel fund so that you aren’t interfering with your regular savings. Many banks, like Rockland Trust, offer a variety of savings accounts and can help you determine which is best for your financial strategy. Using a separate savings account will also keep you on budget during your trip and help avoid mistakenly drawing from your regular checking account.
Pro Tip: Connect a debit card to this account so you can withdraw money directly from the account when you’re on vacation. This will help you track spending as you go and ensure you stay on budget.
- Research - A surefire way to get the best deal is to research your trip well in advance. Buy tickets in advance for your plane travel, the attractions you want to visit, and events you want to attend. If you’re going somewhere that’s reachable by car, consider driving and calculate the cost of gas plus an overnight or two at a hotel/motel along the way. Booking a vacation during peak holiday season will cost you more - both for flights and hotels - so make sure to factor that into your budget. Look for alternatives such as Airbnb, HomeAway.com or Tripping.com for less expensive options.
- Comparison shop - Comparison shop using Expedia, Hopper or other sites to get the best flight and package deals. Consider alternative airports and avoid connections if possible since those flights tend to have the greatest risk of delay. Buy your tickets early and check flight predictor sites like Bing or KAYAK which predict whether or not the prices for specific destinations are expected to go up or down. The earlier you book, the better deal you’ll get. Generally three months to four weeks ahead of when you plan to travel is a good window of time to buy your plane tickets, but it varies depending on whether you’re flying domestic or international. Avoid peak travel days - for Thanksgiving it’s Wednesday while Christmas and New Year’s varies depending on which day of the week they fall on. Pro tip: Get a better deal by flying on the day of the holiday.
- Consider using a travel agent - Travel agents can help save you both time and money and most don’t charge fees for their service. Some agents, like Susan Peavey of Susan Peavey Travel in Marshfield, Mass., provide a payment plan option much like the short-term savings accounts which are sometimes still referred to as “Christmas Club” accounts. Travel agents can also give you the peace of mind knowing the five-star resort you booked actually looks like the one on your computer screen because they’ve scouted it out for you.
“A lot of people know what they want to do but they don’t know how to get there,” said Susan. “We’re their voice, we’re their research.”
- Avoid budget busters - It’s nice to have your own hotel room, but if you have friends or family who live at your destination you could consider staying with them if it’s not too much trouble. Similarly, a rental car offers convenience but at a price. Consider using public transportation and staying somewhere with a kitchen, which is especially helpful when traveling with kids, as a simple breakfast or lunch at a restaurant will run you $40 to $80 per meal or more depending on the size of your family.
If you get off track and go off budget, make sure you have a contingency plan in place so that you can still pay your bills when you return home. Rockland Trust has a
team of financial planners who can help you.
